Common use of O&M Reserve Account Clause in Contracts

O&M Reserve Account. The Borrower and the Security Agent have established with the Securities Intermediary an account entitled the “Stetson O&M Reserve Account” (account number 0000000) (the “O&M Reserve Account”). Unless an Event of Default exists and is continuing, Administrative Agent, as beneficiary under the O&M Reserve LC, shall make a draw under the O&M Reserve LC to the extent necessary in the event that the amounts on deposit in the Revenue Account are at any applicable time insufficient for the purpose set forth in Section 6(b)(1). All proceeds of Drawing Payments in respect of the O&M Reserve LC shall be deposited in the O&M Reserve Account. Funds on deposit in the O&M Reserve Account shall be used as and to the extent necessary in the event that the amounts on deposit in the Revenue Account are at any time insufficient for the purpose set forth in Section 6(b)(1). In the event that upon the repayment of any O&M Reserve LC Loan and reinstatement of the Stated Amount of the O&M Reserve LC, the effect of which is that the aggregate sum of such reinstated Stated Amount and amount of funds on deposit in the Debt Service Reserve Account exceeds the O&M Reserve Requirement, then such excess amount shall be transferred to the Revenue Account to be applied pursuant to Section 6(b). Funds on deposit in the O&M Reserve Account may be transferred at Borrower’s request to be applied as an Optional Prepayment in connection with an AIMCO Prepayment.